What Home Renovations Add the Most Value?
Written by Artisan Contracting on April 2, 2020
Original content published April 2, 2020. Updated April 24, 2023.
The most important question every homeowner should consider is whether a renovation will pay off and boost the value of their home. Although you may not be planning to sell your home anytime soon, remodelling projects can add value to your home, improve your family’s quality of life and attract future buyers.
Even if selling isn’t your primary goal, considering how your remodel will affect your home value is never a bad idea. Here are the best home improvement projects for increasing value, with estimates on how much of your investment you can get back into your home’s value.
What are the top-ranking home improvement projects?
Generally, the following renovations will provide the most bang for your buck:
- Kitchen remodels
- Exterior upgrades
- Bathroom renovations
- New windows and doors
- Front entry redesigns
Remember, you do not want an overblown renovation project that makes your home the most expensive house in the neighbourhood. It’s important that the style, size, and quality of the renovation fit the rest of the house. If you plan on selling your home within the next five years, keep potential buyers in mind before you start on any major remodelling job.
What’s the Return on a Kitchen Remodel?
Since the kitchen is the heart of the home, it is the single most important room in the house relating to valuation. According to HGTV, kitchen and bathroom improvements increase the value of your house more than most renovations.
Remodeling a kitchen adds, on average, 81 percent of its value to the home. Your exact value will depend on what you add, of course, but a designer can help you make the best decisions. Modern cabinetry, under-cabinet lighting, backsplash tiling, upgraded countertops, modern faucets, and new appliances will all significantly increase the value of your home.
What’s the Return on an Exterior Remodel?
Changing your home exterior is an uncommon remodelling project that has a surprisingly big impact. Adding stone veneer siding recoups 97% of its value, while simply replacing vinyl siding adds 76% of its value. High-end materials give a better ROI in general, but they aren’t right for every home’s exterior. You’ll want to work with a designer to make your home appropriate for the neighbourhood while also boosting its curb appeal.
What’s the Return on a Bathroom Remodel?
Similarly, bathroom remodels can make a huge impact on the value of your home. Because of today’s trends, the bathroom can be one of the most expensive rooms in the house to renovate. In addition to the expensive elements involved, such as cabinetry, tile, and fixtures, there is the cost of hiring a professional contractor who is knowledgeable about design, plumbing, tiling and electrical work.
One surefire way to see a decent ROI from a bathroom is to upgrade it with accessibility features. This can make your home much more valuable for retirees or those who want their in-laws to live with them.
Front Entry Upgrades
When a buyer or appraiser looks at your house, the first thing that catches their attention and focus is your front door. Upgrading your front entry can give your house the appearance of solidity and quality. This feature has a positive impact on their opinion of the home and increases its value. Adding French doors leading to the backyard or deck can also increase home value.
Windows are an expensive proposition, but if your windows no longer enhance the facade of your home, shield it from the elements or filter out noise, then it’s time to update them. Today’s windows are energy efficient and can help you save on heating and cooling costs. They can decrease your costs by up to 25% while improving the aesthetics of your home by complementing your home’s theme and design.
What About a Main Floor Remodel?
Main floor remodels can also add a significant amount to your home value, but it depends on exactly what your remodel entails. Different elements that go into a main floor remodel may add different amounts.
Does Adding a Fireplace Increase Home Value?
If a fireplace is part of your main floor renovation you can expect a bigger boost to home value. However, it’s important to remember that a fireplace is a big priority for some buyers and less of a priority for others.
Do Light Fixtures Increase Home Value?
The smaller a renovation is, the less likely it is to have a significant impact on your home value. If changing your light fixtures is part of a bigger main floor renovation, it may be very important.
Maximize Your ROI By Working With Professional Contractors
Want to add value to your home, but don’t know where to start? At Artisan Contracting, we can guide you in your decisions, giving you a home you will love, while also increasing your home’s value. Contact us today!